Académique Documents
Professionnel Documents
Culture Documents
References
Book Author Publisher
1. Operations Management Roger Schroeder McGraw Hill
2. Operations Management-Processes Lee Krajewski and Prentice Hall
and Value Chains Larry Ritzman
3. Operations Management B. Mahadevan
4. Production and Operations S.N. Chary
Management
5. Production and Operations Chase, Acquino and TMH
Management Ravi Shankar
6. Schaum’s Outline of Operations Joseph Monks TMH
Management
7. Supply Chain Management Janat Shah Pearson
What Is Operations
Management?
Production is the creation of goods and
services
Operations management (OM) is the set of
activities that creates value in the form of
goods ,services and information by
transforming inputs into outputs
OM is one of three major functions
(marketing, finance, and operations) of any
organization
Operations management is defined as the design, operation and
improvement of the system that creates and delivers the primary
product and services.
Three perspectives of OM
Operations as a transformation process
Operations as a basic function
Operations as the technical core
What is Operations Management?
Outputs
2 Location Transportation
3 Exchange Retailing
4 Storage Warehousing
Operations Examples
Goods Producing Farming, mining, construction ,
manufacturing, power generation
Storage/TransportationWarehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange Retailing, wholesaling, banking,
renting, leasing, library, loans
Entertainment Films, radio and television,
concerts, recording
Communication Newspapers, radio and television
newscasts, telephone, satellites
Food Processor
Automobile
Computer
Installed carpeting
Fast-food meal
Restaurant meal/auto repair
Hospital care
Advertising agency/
investment management
Consulting service/
teaching
Counseling
100% 75 50 25 0 25 50 75 100%
| | | | | | | | |
Relative Price
Average
value
Economy
value Outstanding
Source: Adapted from Gale,
value B.T., and Buzzell, R.D. “Market
perceived quality: Key strategic
Lower concept.” Planning
Review, March-April, 1989, 10.
Inferior Superior
Relative Quality
Table 1.7
Industrial revolution (1770’s)
Scientific management (1911)
Mass production
Interchangeable parts
Division of labor
Human relations movement (1920-60)
Decision models (1915, 1960-70’s)
Influence of Japanese manufacturers
Significant Events in OM
The Heritage of OM
Job specialization
New Trends in OM
Past Causes Future
Figure 1.6
New Trends in OM
Past Causes Future
Figure 1.6
New Trends in OM
Past Causes Future
Figure 1.6
Responsibilities of Operations Management
Table 1.6
Planning Organizing
– Capacity – Degree of centralization
– Location – Process selection
– Products & services Staffing
– Make or buy – Hiring/laying off
– Layout – Use of Overtime
– Projects Directing
– Scheduling – Incentive plans
Controlling/Improving – Issuance of work orders
– Inventory – Job assignments
– Quality
– Costs
– Productivity
Decision Making
System Design
– capacity
– location
– arrangement of departments
– product and service planning
– acquisition and placement of
equipment
Decision Making
System operation
– personnel
– inventory
– scheduling
– project
management
– quality assurance
Decision Making
Models
Quantitative approaches
Analysis of trade-offs
Systems approach
Models
– Physical
– Schematic
– Mathematical Tradeoffs
And more . ..
Trends in Business
Major trends
The Internet, e-commerce, e-business
Management technology
Globalization
Management of supply chains
Agility
Other Important Trends
Ethical behavior
Operations strategy
Working with fewer resources
Cost control and productivity
Quality and process improvement
Increased regulation and product liability
Lean production
Flexibility
Relative Price
Average
value
Economy
value Outstanding
Source: Adapted from Gale,
value B.T., and Buzzell, R.D. “Market
perceived quality: Key strategic
Lower concept.” Planning
Review, March-April, 1989, 10.
Inferior Superior
Relative Quality
Product plans
Competitive Priorities
Positioning Strategies
Location
Technological Choices
Quality management and control
Inventory management and control
Materials Management
Master production scheduling
Productivity Challenge
Important Note!
Production is a measure of output only and not
a measure of efficiency
Productivity Variables
Labor - contributes
about 10% of the
annual increase
Capital - contributes
about 38% of the
annual increase
Management -
contributes about 52%
of the annual increase